Small businesses face many challenges to start up, manage, and sustain over a long period. These challenges become greater during an economic downturn or a pandemic. Now this Corona crisis has devastated the global economies and there is period of economic decline in the gross domestic product for next few years.The challenge is to be aggressive and imaginative. Entrepreneurs who survive and even prosper during hard times try to overcome the constraints with a new perspective, and do business differently.So be a leaner, be innovative find more cost-effective and more efficient operation techniques to improve the business.
Look for costing cutting measures.
Focus on cost cutting only in operating cost and unnecessary cost
Focus on Core Competencies, mainstream business
Small business must focus on the core competencies rather than adding other products or services completely different from mainstream business, as it will damage your brand and reputation.
Drop the extras and focus on what you have do best in it , innovating it and make most profit out of it.
Reducing your employees might seem to be a logical way to cut costs of the companies, but it will affect business in long run because when economic conditions improve, you will have to start from scratch to train new employees.
Customer service is the main reason why your small business will survive so instead of cost cutting we must effort to improve customer service.Give your customers a reason to invest their money in your business.
Regular check your cash flow
Check your cash flows and accounting statements regularly. Businesses that review their cash flow can manage their assets and liabilities in better way. They will look to streamline wherever possible, cutting incidentals cost,travel expenses, minimize lines of credit, and payment of cash .Maintain a strong cash stream throughout the pandemic, in will help you escape liquidity problems.
Be sure to improve productivity by offering employee incentives, such as small bonuses or sales percentages, is an innovative way and increases productivity. Remember that employees are your small business' biggest asset.
Implement SWOT Analysis
SWOTstands for strengths, weaknesses, opportunities and threats and implementing SWOT analysis will help you to identify your weak points and take certain measures to overcome it.
Many small businesses make the mistake of cutting their marketing budget as a measure of cost cutting , but this is time when your small business needs marketing the most because customers are restless and always looking for innovative buying decisions by changing product. So don't ever think of quitting marketing efforts as it will help customers to find your products and services.
We've all heard the proverb that, “A bird in the hand is worth two in the bush”. The bird in the hand is your customer or client that is sales lead without incurring the costs of finding new customers.
Customer who are happy and contended with the business product and followup will , give you many more sales opportunities. The key to survive tough business is excellent customer services you cannot afford to ignore the potential profits from the existing customers.Identify their business needs, and do a prompt query resolution for customer retention. Customer retention is measure to recover business cost.
Expansion of business by increasing new customer/client base if your small business is going to prosper in tough times. This means drawing customers from your competition.Offer something more or different than what the companies offer to increase sales
See if anything can be done to reduce your inventory costs without sacrificing the quality of goods sold as it will cost inconvenience to customers.
Covid-19 has caused digital transformation for businesses. Let me highlight some points
Video & Zoom Calls:
All business activities of managing customer relations like meeting, online lectures, transactions, , job interviews, and demo for products have already moved online via video conferencing/Zoom calls.
Communication Chain- With good work from home policy, it is important to be in loop with the office staff.
Data Theft- Digital transformation has posed us to risk like internal threats such as data leaks and external ones such as cyber hacks .Make sure that your company regularly updates the anti-virus software, keep a 24-hour IT helpline to stay connected.
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